Learning and development in working with young people Essay

Learning and development in working with young people - Essay Example Therefore, Madcap main idea is to assist these groups of young children by allowing them to explore themselves and put their ideas into practice and things they want to achieve by giving them the opportunity (Steve, Madcap Sequence, 7). Practices and Work There are a number of practices involved in this learning centre as it comprises of different young people with diversified interest to pursue. Because of this, the youngsters work in music projects on their own as the learning centre gives them support towards achieving their ideas. The workers help them in building confidence to enable them cope with their ideas and realize the value of their own ideas. Thereafter, the workers leave them to allow them exploit the opportunities. The workers role is to give them the opportunity and assist them with minimal help towards realizing their ideas. Similarly, the youngsters undergo gauging to make them have insights of what they are involved by shedding more light into their own projects ( Steve, Madcap Sequence, 7). This is a practice meant at ensuring that youngsters develop insights and understand their projects more so music to better their values and outcomes as well as to bring what is good about it. Madcap is concerned with recording music produced by the youngsters. It offers the available support to its youngsters to enable then listen and produce their music to meet their objectives. From the scripts, James came to record his music by recording it with the help of Steve who is one of the workers responsible for their training (James, Madcap Sequence 1). The role of the worker is to ensure the availability of recording equipments and facilities. Therefore, the main role is played by the youngsters in ensuring they achieve their dream from the assistance got from workers. In Madcap, the workers are not judgmental, and this aims to promote their talents by encouraging them to doing what inessential for them. Creativity of the youngsters is promoted in the proje cts in the initial stages, as they are kept smiling and feeling the sense that their ideas have values. Youngsters also role out the plans, which outlines what is taking place and ways of achieving them. This may comprise of different activities besides just completing the project offered by the learning centre. They also give the centre the details of the purpose of what it they want to achieve from their projects. Their goals may be to develop a compact disk (cd), live performance or just to set lyrics and the centre helps them towards achieving (Steve, Madcap Sequence, 7). Madcap provides assistances to youngsters in different activities that they have developed interests. It empowers the youngsters on how they can develop their talents, come up with raw ideas, and help them achieve. The project discourages duplication of ideas as it wants to help young people come with new projects, which are unique and do not exist (Man in Cap, Madcap Sequence, 2). Because of this, the centre d iscourages mixing music and asks youngsters to come with unique ways of arranging instruments used in mixing to make it a unique idea. From this perspective, they help young people in playing instruments mostly guitars (Girl Madcap Sequence, 2). The project coaches students towards realizing their potentials and developing ideas they have by giving them necessary support where they experience challenges. The work

Feminist Research Paper Essay Example | Topics and Well Written Essays - 1750 words

Feminist Research Paper - Essay Example It is factual that the law evidently gave ore privileges to men, and presented women a small number of formal civil liberties. However, within a glove where the majority of individuals made their individual food, clothes, and houses instead of purchasing these things ready-made, the work that a farm wife did was vital to the family’s essential survival (Fredman 61). Nevertheless, as a subsistence financial system started being substituted by a marketplace financial system, within which additional domestic goods were purchased rather than being made at home. The work that women did within the home turned out to be factually less valuable. A family unit that lived within a farm could purchase clothes rather than making them, could purchase food already prepared, including canned foodstuff, instead of seasoning it individually. The work that women undertook became less vital within the Jacksonian epoch, as marketplace goods progressively substituted goods made within the home more. The affiliation that men and women had for one another had fundamentally transformed. In the illumination of this transformation, and sweeping assurances that the American Revolution made. The American people started reassessing gender functions (Loutfi 87). Various individuals both male and female started making arguments that men and women were essentially equal. This means that women had similar mental capacities as their male counterparts, similar aptitudes, and similar psychological and substantial toughness and competence for common sense and coherent contemplation. These early on feminists additionally argued that women should have the capacity to enjoy the civil liberties that men took pleasure in, as well. The marketplace work was obviously a dissimilar globe, and old practices did not apply anymore. Women started to be worked up constantly for more extensive and comprehensive legislation. Through the Womens Rights

North and South Korea CBA Essay Example for Free

North and South Korea CBA Essay The Korean peninsula is divided into two separate countries, North and South. Looking at both countries you can see the differences. North Korea and South Korea may share the same land but have different outtakes on their economic views, political beliefs, and even social conditions. Before North and South Korea there was just the Korean Peninsula. Korea was ruled by many countries even Japan and China. While in control of Korea, Japan grew hungry for power, and because of this a war started between Korea and the Soviet Union. â€Å"In the North the Japanese troops surrendered to Soviet forces and in the south of the peninsula the Japanese surrendered to American troops† (Beck542). By the end of 1953 the war had ended and the Korean peninsula had completely been separated. Because of this action North and South Korea share a land with two different cultures and traditions. Economically, 35 percent of North Koreans work on farms (CIA7), while in South Korea only 7.3 percent of the population work on farms (CIA7). The other 65 percent of the North Korean population work in industrial businesses. These industrial businesses include building machines, military products, and mining (CIA7). In South Korea the other 92.7 percent work in industrial businesses which includes producing automobiles, electronics, and even some chemicals (CIA7). The major difference is that North Korean work for the government. It doesn’t matter how long you work, how hard, or even if you are the top of the company, people get paid the same amount. South Korea fare better because they work for themselves and their families. South Koreans work to provide a safer environment and a better education for their children. Political domination is one reason why North Koreans work for the government. North Korea has a communist government which means that the country is ran by one di ctator, whereas in South Korea, who has a democratic government, has an election every 4 years to pick a new leader. â€Å"There is respect for the voices and minorities, and importance is given for the individual rights in a democratic government,† says Faye Boaza in here  PowerPoint â€Å"Democratic vs. Communist†, meaning that every voice and thought for the people is heard. â€Å"People are not allowed to voice their opinions in a communist government† (Boaza). North Korea government has more control over the people and basically does what they want to do or what they think is right even if the citizens do not benefit for their actions. South Korea also fares better in this category because their government hears them out before making any circuital decisions. The government has the thoughts of the people in mind and tries to do things that the people can rely on. Living in South Korea the life expectancy for males is 71 years of age, and for females 79 years of age (global Studies), while in North Korea the life expectancy for males is 65 years of age, and females72(CIA3). Just by living in South Korea you add almost 14 years to your life span. One thing that is important to North Korea is their collection of nuclear weapons. North Korea spends so much money on the Army and nuclear weapons. It seems as if the govern doesn’t even care about its people. It’s important to be militarily stable, but to spend outrageous money on the military when people are dying from starvation is not comprehensible. If people keep, dying the military will become nonexistent. One thing that is important in South Korea is education. In South Korea children and adults can get a chance to experience different cultures, traditions, and even languages. On the other hand the citizens of North Korea cannot. The government neglects the citizens of knowing the knowledge of other countries. Censoring is one of those ways. North Korea censors almost everything including the internet, television, and the newspaper down to the last word. Because South Korea has 107 airports (CIA9) people are allowed to advance the study and experience the world. North Korea, in contrast only has 77 airports (CIA9), with 2 flights out per week to Beijing (Kim205). Sometimes the government is paranoid that they want even let you back into the country. With doing this you are leaving your family cared for and leaving all your friends. South Korea is socially better because they have the authority to further their education and even go to different countries. North Korea has a hold on their people. It seems as if the people take two steps forward, the government pushes them back three steps, which is unfair. South Korea is a  better place to live because it allows its people to be free. Because of South Korea’s democratic government they are allowed to better educate the youth on things other than just South Korea. They are allowed to reach beyond the borders of the Korean Bay and study the world. North Korea has a strong hold on their people so they want know what is going on beyond the North Korean borders. This is why south Korea is better. South Korea loves and cares for its people. They seem like a family, than like a country, and that’s what makes them different form the world. North and South Korea share the same land but have many differences. Works Cited Kim, Suki. â€Å"A Visit to North Korea.† The New York Review of Books 13 February 2003: 205-210. CIA World Fact Book. CIA. 25 January 2010: 1 November 2011 http://ww.cia.gov/libraworld-factbook/geos/kn.html. CIA World Fact Book. CIA. 25 January 2010: 1 November 2011 http://ww.cia.gov/library/publications/the-factbook/geos/kn.html. Global Studies- Japan and the Pacific Rim, 7th Edition. Guilford, Connecticut: McGraw Hill/ Duskin Company  ©2005

Business Plan for a Nightclub Essay examples -- Business Management Fi

Business Plan for a Nightclub LEVEL 3 plans to be a chain of upscale nightclubs centering around the middle Georgia areas. It is demographically targeted to middle aged adult’s ages ranging from 25 and up. LEVEL 3 aims at providing quality entertainment, food and refreshments along with a welcoming environment that will give our customers a unique and entertaining experience. Company Overview This company evolved through a partnership on January 19th 2005. LEVEL 3 is located in Perry, Georgia and caters to the surrounding Middle Georgia areas. The company plans to attract upscale and mature customers whose ages range from 25 and older. LEVEL 3 will be the premier, high-energy themed dance and night club in Middle Georgia. We will provide our customers with live entertainment, quality food and service along with a great atmosphere. We want to create an intimate setting that will make our customers feel a sense of belonging. Easily manageable and profitable, this business appeals to customers who want to relax and meet different enjoyable and exciting people. It will capitalize on the ever growing demand for a safe and sophisticated nightclub. Our objectives are to profit on our excellent location in Perry, Georgia, with commitment to the community developments. We also want to maintain tight control of costs, operations, and cash flow through diligent management. In additi on, we will maintain a food cost below 33% of food revenue and beverage costs below 25% of beverage revenue. Finally, we plan to exceed $3 million in annual sales by the third year of plan implementation. LEVEL 3 plans to launch with a highly publicized grand opening event in the summer of 2005. It intends to expand to other cities within Georgia after revenues excel. Product Plan LEVEL 3 will be characterized by the elaborate dance club situated in a spectator setting which comfortably accommodates 350 guests. The area will offer two private sky boxes and one banquet room which can be combined for use in a conference or private party setting. Also these rooms are intended for special events and daily use. In order to reach and maintain a unique image of quality, LEVEL 3 will provide attentive and friendly service through a high ratio of service personnel to customers, and will also invest in the training and supervision of its employees. The initial hours of operation will be fro... ...footage than anyone else in the region. A simple, yet unique, themed menu and atmosphere will create a sense of 'belonging' for locals and tourists alike. Our operating credo is: "happy enthusiastic employees create happy enthusiastic guests." The main objectives of the development of this new venue are: †¢ Capitalize on excellent location opportunity with swift commitment to the new Town Square development. †¢ To launch the venue with a highly publicized grand opening event in the summer of 2001. †¢ To maintain tight control of costs, operations, and cash flow through diligent management and automated computer control. †¢ To maintain a food cost below 33% of food revenue. †¢ To maintain a total beverage cost below 25% of beverage revenue. †¢ To exceed $3 million in annual sales by the third year of plan implementation. The keys to success in achieving our goals are: †¢ Provide exceptional service that leaves an impression. †¢ Consistent entertainment atmosphere and product quality. †¢ Managing our internal finances and cash flow to enable upward capital growth. †¢ Strict control of all costs, at all times, without exception

Militant Nonviolence Essay

Erik Erikson, the world-renowned author of the book Gandhi’s truth has also been popular because of his stages of psychosocial development (Niolon, 2007) . The said stages are enumerated in this manner: Infancy (Birth – 18 months) wherein the main psychosocial crisis is trust vs. mistrust, Toddler (1 1/2 – 3 years) which usually involves autonomy vs. shame & doubt, Play Age (3-6 years), usually involving the psychosocial crisis of initiative vs. guilt, school age (7-12 years), which often related to industry vs. inferiority, adolescence (12-19 years), identity vs. role confusion, young adulthood (20-34 years old), intimacy vs. isolation, adulthood (35-60 years), generativity vs. stagnation, and finally, late adulthood (60 years and above that is usually associated with the psychosocial crisis integrity vs. despair (Niolon, 2007) . This paper shall look into the book authored by the same person, entitled Gandhi’s truth, a book that has been said to be the acclaimed study of Mahatma Gandhi, taking the psychoanalytic theory developed by its author into consideration. This non-fictional literary work shall be analyzed based on the theory developed by the same psychoanalyst together with the discussions obtained from the book Development and Aging by Papalia, Sterns, Feldman and Camp, including topics such as health and aging, intelligence and its measurements, creativity, mature thought, wisdom and moral intelligences; education, work and leisure, etc. It has been a known fact that humans face their decline when they reach a certain age. It is often heard from different people that this kind of decline happens as most people are not as productive as they were once was in their childhood or early adulthood. This is also most prevalent in most senior citizens (Godrej, 2002). Apparently, for most studies, development stops at a certain stage . On the contrary, Erikson’s theory disproves the fact that development stops. In fact, it continues throughout the life cycle. According to the psychoanalyst and author of the very popular book, older people are not finished developing. Older people are said to come up to terms with their own morality, making them look deeper into their while lives. More often than not, they look back to the good times with gladness, at their hard times with self –respect, and finally, look at their mistakes and regrets with forgiveness (Lasch, 1969) . It is doing so that they rediscover integrity as they get ready for whatever challenges that life and death could bring upon them. On the other hand, those who remain isolated to the hurts and sadness that their life brought to them, shall be dissatisfied with the life that they have led and would easily get depressed. These are the concepts being described by Erik Erikson in his stages of psychosocial development. He has reflected these said concepts onto the life of Mohandas Gandhi, more popularly known as Mahatma or the great soul, the father of the Indian Nation. Almost everyone on the face of this planet has heard about the contributions of one of the humans who has been said to lead a great life to the history of India and the whole world (Anderson, n. d. ). He was generally known, as mentioned, as the father of the Indian nation who continuously fought for the independence of his nation from the British colonizers, despite the consequences he faced, despite his old age. Erikson’s Gandhi’s truth is generally a psychological reconstruction of Gandhi’s early years in Kathiawar on the Arabian Sea as well as his exile in London and South Africa. In the same manner, it provided an in depth analysis of the 1918 textile workers’ strike in Ahmedabad where Gandhi was first seen to practice his doctrine of Satyagraha or non violence (Lasch, 1969) . Erikson looked into the other aspects of this great man’s life that influenced his adoption of Satyagraha. The said author looked into the precocious and relentless conscience of the great soul by looking onto these said events which included the way Gandhi nursed his father, the civil servant whose career and health declined during his son’s youth, which helped him, set the pattern for a leadership that could defeat a superior opponent nonviolently (Lasch, 1969). Gandhi’s unsuccessful and premature marriage’s effect on his adoption of Satyagraha was also examined. Generally, this unsuccessful marriage of his left him in horror of his sexuality (Anderson, n. d. ). At the same time, it encouraged him to develop the religious and spiritual aspect of his life that played a very important role in his battle for the independence of his beloved country (Lasch, 1969). Of course, this has been the reason why Mahatma Gandhi started his quest for sainthood which had taken a political form. Gandhi’s leadership in the said textile strike has also been reexamined. It is where Erikson focused his study on the life of the great soul, in relation to that of his developed theory (Anderson, n. d. ). According to the said author, this has been one of the most unusual exercises in nonviolence though it led to the victory of Mahatma and the textile workers. This does not only reflect Mahatma Gandhi’s doctrine of nonviolence but his faithfulness to dharma (Lasch, 1969) . Aside from the religious life led by Mohandas K. Gandhi, more popularly known as Mahatma Gandhi, his spatial intelligence and creativity should be reconsidered. These two has contributed so much to his doctrine as he was able to devise ways, using his intelligence as a wise man in devising ways to battle their colonizers (Lasch, 1969). Generally, his spatial intelligence allowed Gandhi a better and quicker ways of correcting mistakes than other forms of political action. Gandhi’s doctrine aims to cure men of their righteous and fanatic moralism that has been said to be the cause of violence that are quite irrational (Anderson, n. d. ). It is obviously seen that Gandhi’s actions as an aged man has not declined due to the challenges he experienced during his childhood and young adulthood (Chawla, 2001). In the same manner, his doctrine of non-violence or Satyagraha has not only been affected by his deteriorating health but of his beliefs, religiousness and faithfulness to dharma that has contributed so much in his fight for the freedom of his motherland, India, the land which had been infamously known for its division brought about by differences in religion (Anderson, n. d. ). Basically, the analysis of this book, together with the psychoanalytical theory developed by Erik Erikson, has provided the psychological foundations of what has been known all over the world as great leadership and non-violence. It showed how Gandhi’s previous experiences affected his life as an aged man. As Erikson suggest, the spirit that Gandhi had ever since his childhood has influenced standardization (Anderson, n. d. ). Every individual is then encouraged to follow his own path, a path that is based on his insights with regard to the realities of the world that he is living in as well as the realities by which he or she knows his or her own self. If this perceptions turn out to be true, then the path he has taken shall be the path of truth. This is what the life of Gandhi, based on Erikson’s book showed us. His perceptions that have been developed and continuously developing throughout his own life has influenced the development of a doctrine and philosophy that has gained him the title of a great soul (Chawla, 2001) . It is through this that he was able to influence not just his countrymen but the whole world as well. Eventually, looking into the brighter side of life can do so much good to a person who is in the last stage of his psychosocial development. In Gandhi’s case, he did not allow his weaknesses to serve as barriers in his fight, instead, he utilized them in such a way that his opponents looked onto it as his strengths (Anderson, n.d. ). References Anderson, H. (1971. ) Gandhi’s Truth: On the Origins of Militant Nonviolence. Theology Today. Vol 28. No. 2 Retrieved December 18, 2007 from http://theologytoday. ptsem. edu/jul1971/v28-2-bookreview10. htm Chawla, A. (2001). MOVING BEYOND GANDHI’S TRUTH. Retrieved December 18, 2007 from http://www. samarthbharat. com/truth. htm ERIKSON’S THEORY OF PSYCHOSOCIAL DEVELOPMENT (2007). Retrieved December 18, 2007 from http://www. fractaldomains. com/devpsych/erikson. htm Erikson, E. (1969). Gandhi’s Truth. Journal of Religion and Health. Volume 9, Number 3. Godrej. F. (2002). Gandhi’s Truth: Nonviolence as Epistemological Arbiter. Retrieved December 18, 2007 from Lasch, C. (1969). One Man’s Quest for Sainthood and the Revolutionary Philosophy to Which It Led. Retrieved December 18, 2007 from http:// www. nytimes. com/books/99/08/22/specials/erikson-gandhi. html Niolon, R. (2007) Erickon’s Psychosocial Stages of Development. Retrieved December 18, 2007 from http://www. psychpage. com/learning/library/person/erikson. html

Essay On Martha Prescod Norman Noonan - 1515 Words

Martha Prescod Norman Noonan Martha Prescod Norman Noonan is noteworthy for her work with the Student Nonviolent Coordinating Committee (SNCC) during the Civil Rights Movement. Noonan’s most notable achievements include raising money for SNCC, canvassing votes with the Albany Project, working on the Alabama Project, and contributing to Hands on the Freedom Plow: Personal Account by Women in SNCC. Biographical Information Martha Prescod Norman Noonan was born on February 25, 1945 in Providence, Rhode Island to a family of activists (Civil Rights History Project). Noonan’s father, who is of West-Indian descent, was involved in efforts for Pan-West Indian Unity (Civil Rights History Project). Both of her parents were members of the†¦show more content†¦At the University of Michigan, Noonan attended a luncheon talk by Curtis Hayes, a worker for the Student Nonviolent Coordinating Committee (SNCC), which was a student-run civil rights organization (Noonan 484). Meeting Hayes, who was almost the same age as her, inspired Noonan to join the Movement (Noonan 484). Soon after, Tom Hayden, who had just returned from a Freedom Ride in Georgia, spoke with Noonan about his experiences and further inspired, as well as encouraged, Noonan to work with the Movement (Noonan 484). In 1962, Noonan attended a joint SNCC and Students for a Democratic Society (which she was a membe r of at the time) conference, where she spoke with various SNCC workers (Noonan 484). These conversations convinced Noonan of the logic and practicality of their organization’s vision, and the members’ welcoming spirit convinced Noonan to join SNCC’s work with the Southern Freedom Movement (Noonan 485). After her freshman year at the University of Michigan, Noonan told her parents she wanted to drop-out of school to work in Mississippi as a full-time civil rights organizer (Noonan 485). Her parents strongly feared for her safety and, since she was still underage, her parents insisted she take summer classes in Detroit and find a civil rights activity closer to home (Noonan 485). That summer, Noonan took classes taught by local radicals, Seymour Faber and George Rawick, whoShow MoreRelatedWomen of the 20th Century Essays1670 Words   |  7 Pagesto prison camps for the sake of national security, and the Civil Rights Movement of the sixties resulted in arrests on a massive scale. Each prison, whether mental or physical, offered different challenges to the women inside. The purpose of this essay is to argue that although the women of each period faced different challenges and varied circumstances, by embracing their unique identities they broke free of their prison’s hold and were able to live as individuals with fulfilling lives. In the

Financial Analysis Of Vtb Bank Russia Finance Essay - Free Essay Example

Sample details Pages: 16 Words: 4852 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? VTB Bank is the largest financial institution in Russia. It is the main entity of the VTB Group, a leading universal Russian banking group offering a wide range of banking products and services in Russia, the CIS, Western Europe, Africa and Asia. In 2007 disposable household income grew by 10.4%. The average salary reached RUB 13,527; its real growth was 16.2%. These indicators are reflected in the development of the banking sector. Positive economic trends and rising household income led to increased activity of Russian citizens on financial markets. VTB was in a strong position Don’t waste time! Our writers will create an original "Financial Analysis Of Vtb Bank Russia Finance Essay" essay for you Create order to meet this growing demand as witnessed by the positive growth in all key areas of the Banks business. Last year the Russian economy faced a series of problems. First and foremost, the most pressing problem was inflation, which was tied to a significant degree, to the rising prices for certain goods on world markets. Our country, which is already highly integrated into the global economy, felt the effect of the negative developments in the economy. Thanks to effective delivery of its strategy, VTB managed to neutralize the consequences of these trends and significantly decrease the level of macroeconomic risks. The outcome of these efforts is VTBs impressive results, which are reflected in this report. The key indicators of banking activity in Russia allow us to characterize 2007 as a very successful year for the banking sector. The rate of growth of most indicators was the highest in recent years. Banking sector assets grew by 44.1%, while the rate of capital growth was 57.8%. Even in this context, VTBs success stands out. Its growth significantly outstripped the market average. For example, VTBs assets grew by 76.7% due mainly to the IPO carried out this year, the largest among European banks in 2007. VTBs contribution to the development of the banking sector and the Russian economy, as a whole, is increasing with every year. VTB is among the leaders in virtually all spheres of financial activity, and is one of the fastest growing banking groups in the country. Key Financial Operational Indicators: Financial Results I n t e r e s t i n c o m e 1 9 6 6 5 5 3 0 I n t e r e s t e x p e n s e 1 9 ( 3 4 5 ) ( 1 8 2 ) ( P r o v i s i o n f o r ) r e l e a s e o f l o a n i m p a i r m e n t 7 , 8 ( 7 8 ) 3 6 G a i n s l e s s l o s s e s a r i s i n g f r o m t r a d i n g s e c u r i t i e s 1 0 5 3 6 G a i n s l e s s l o s s e s a r i s i n g f r o m i n v e s t m e n t s e c u r i t i e s a v a i l a b l e f o r s a l e 1 0 5 1 6 8 G a i n s l e s s l o s s e s a r i s i n g f r o m d e a l i n g i n f o r e i g n c u r r e n c i e s 3 4 1 7 G a i n s l e s s l o s s e s f r o m d e r i v a t i v e f i n a n c i a l i n s t r u m e n t s 2 7 2 4 7 F o r e i g n e x c h a n e t r a n s l a t i o n g a i n s l e s s l o s s e s 2 2 ( 2 3 ) F e e a n d c o m m i s s i o n i n c o m e 2 0 7 4 4 4 F e e a n d c o m m i s s i o n e x p e n s e 2 0 ( 6 ) ( 6 ) O t h e r o p e r a t i n g i n c o m e 2 1 6 1 2 0 O p e r a t i n g e x p e n s e s 2 2 ( 3 9 1 ) ( 2 6 3 ) I n c o m e t a x b e n e f i t ( e x p e n s e ) 2 3 1 7 ( 1 0 6 ) M i n o r i t y i n t e r e s t 1 7 ( 2 3 ) ( 1 7 ) CAMELS ANALYSIS The banking sector has been undergoing a complex, but comprehensive phase of restructuring since 1991, with a view to make it sound, efficient, and at the same time forging its links firmly with the real sector for promotion of savings, investment and growth. Although a complete turnaround in banking sector performance is not expected till the completion of reforms, signs of improvement are visible in some indicators under the CAMEL framework. Under this bank is required to enhance capital adequacy, strengthen asset quality, improve management, increase earnings and reduce sensitivity to various financial risks. The almost simultaneous nature of these developments makes it difficult to disentangle the positive impact of reform measures. Keeping this in mind, signs of improvements and deteriorations are discussed for the three groups of scheduled banks in the following sections. CAMELS Framework Supervisory framework, consistent with international norms, covers risk-monitoring factors for evaluating the performance of banks. This framework involves the analyses of six groups of indicators reflecting the health of financial institutions. The indicators are as follows: CAPITAL ADEQUACY ASSET QUALITY MANAGEMENT SOUNDNESS EARNINGS PROFITABILITY LIQUIDITY SENSITIVITY TO MARKET RISK The whole banking scenario has changed in the very recent past on the recommendations of Narasimham Committee. Further BASELL II Norms were introduced to internationally standardize processes and make the banking industry more adaptive to the sensitive market risks. The fact that banks work under the most volatile conditions and the banking industry as such in the booming phase makes it an interesting subject of study. Amongst these reforms and restructuring the CAMELS Framework has its own contribution to the way modern banking is looked up on now. The attempt here is to see how various ratios have been used and interpreted to reveal a banks performance and how this particular model encompasses a wide range of parameters making it a widely used and accepted model in todays scenario. Capital Adequacy Capital base of financial institutions facilitates depositors in forming their risk perception about the institutions. Also, it is the key parameter for financial managers to maintain adequate levels of capitalization. Moreover, besides absorbing unanticipated shocks, it signals that the institution will continue to honor its obligations. The most widely used indicator of capital adequacy is capital to risk-weighted assets ratio (CRWA). According to Bank Supervision Regulation Committee (The Basle Committee) of Bank for International Settlements, a minimum 8 percent CRWA is required. Capital adequacy ultimately determines how well financial institutions can cope with shocks to their balance sheets. Thus, it is useful to track capital-adequacy ratios that take into account the most important financial risks-foreign exchange, credit, and interest rate risks-by assigning risk weightings to the institutions assets. A Capital Adequacy Ratio is a measure of a banks capital. It is expressed as a percentage of a banks risk weighted credit exposures. Also known as Capital to Risk Weighted Assets Ratio (CRAR). Capital adequacy is measured by the ratio of capital to risk-weighted assets (CRAR). A sound capital base strengthens confidence of depositors. This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world. Capital Adequacy ratio: For year 2007, 2005, 2004 2003 was 14.5%, 14.1%, 12.0% 19.6% respectively which are exceeded minimum 8% recommended by Basel Accord. Asset Quality: Asset quality determines the robustness of financial institutions against loss of value in the assets. The deteriorating value of assets, being prime source of banking problems, directly pour into other areas, as losses are eventually written-off against capital, which ultimately jeopardizes the earning capacity of the institution. With this backdrop, the asset quality is gauged in relation to the level and severity of non-performing assets, adequacy of provisions, recoveries, distribution of assets etc. Popular indicators include non-performing loans to advances, loan default to total advances, and recoveries to loan default ratios. The solvency of financial institutions typically is at risk when their assets become impaired, so it is important to monitor indicators of the quality of their assets in terms of overexposure to specific risks, trends in nonperforming loans, and the health and profitability of bank borrowers- especially the corporate sector. Share of bank assets in the aggregate financial sector assets: In most emerging markets, banking sector assets comprise well over 80 per cent of total financial sector assets, whereas these figures are much lower in the developed economies. Furthermore, deposits as a share of total bank liabilities have declined since 1990 in many developed countries, while in developing countries public deposits continue to be dominant in banks. In India, the share of banking assets in total financial sector assets is around 75 per cent, as of end-March 2008. There is, no doubt, merit in recognizing the importance of diversification in the institutional and instrument-specific a spects of financial intermediation in the interests of wider choice, competition and stability. However, the dominant role of banks in financial intermediation in emerging economies and particularly in India will continue in the medium-term; and the banks will continue to be special for a long time. In this regard, it is useful to emphasis the dominance of banks in the developing countries in promoting non-bank financial intermediaries and services including in development of debt-markets. Even where role of banks is apparently diminishing in emerging markets, substantively, they continue to play a leading role in non-banking financing activities, including the development of financial markets. One of the indicators for asset quality is the ratio of non-performing loans to total loans (GNPA). The gross non-performing loans to gross advances ratio is more indicative of the quality of credit decisions made by bankers. Higher GNPA is indicative of poor credit decision-making. NPA: Non-Performing Assets Advances are classified into performing and non-performing advances (NPAs) as per RBI guidelines. NPAs are further classified into sub-standard, doubtful and loss assets based on the criteria stipulated by RBI. An asset, including a leased asset, becomes non-performing when it ceases to generate income for the Bank. An NPA is a loan or an advance where: Interest and/or installment of principal remains overdue for a period of more than 90 days in respect of a term loan; The account remains out-of-order in respect of an Overdraft or Cash Credit (OD/CC); The bill remains overdue for a period of more than 90 days in case of bills purchased and discounted; A loan granted for short duration crops will be treated as an NPA if the installments of principal or interest thereon remain overdue for two crop seasons; and A loan granted for long duration crops will be treated as an NPA if the installments of principal or interest thereon remain overdue for one crop season. The Bank classifies an account as an NPA only if the interest imposed during any quarter is not fully repaid within 90 days from the end of the relevant quarter. This is a key to the stability of the banking sector. There should be no hesitation in stating that Indian banks have done a remarkable job in containment of non-performing loans (NPL) considering the overhang issues and overall difficult environment. For 2008, the net NPL ratio for the Indian scheduled commercial banks at 2.9 per cent is ample testimony to the impressive efforts being made by our banking system. In fact, recovery management is also linked to the banks interest margins. The cost and recovery management supported by enabling legal framework hold the key to future health and competitiveness of the Indian banks. No doubt, improving recovery-management in India is an area requiring expeditious and effective actions in legal, institutional and judicial processes. Management Soundness Management of financial institution is generally evaluated in terms of capital adequacy, asset quality, earnings and profitability, liquidity and risk sensitivity ratings. In addition, performance evaluation includes compliance with set norms, ability to plan and react to changing circumstances, technical competence, leadership and administrative ability. In effect, management rating is just an amalgam of performance in the above-mentioned areas. Sound management is one of the most important factors behind financial institutions performance. Indicators of quality of management, however, are primarily applicable to individual institutions, and cannot be easily aggregated across the sector. Furthermore, given the qualitative nature of management, it is difficult to judge its soundness just by looking at financial accounts of the banks. Nevertheless, total expenditure to total income and operating expense to total expense helps in gauging the management quality of the banking institutions. Sound management is key to bank performance but is difficult to measure. It is primarily a qualitative factor applicable to individual institutions. Several indicators, however, can jointly serve-as, for instance, efficiency measures do-as an indicator of management soundness. The ratio of non-interest expenditures to total assets (MGNT) can be one of the measures to assess the working of the management. . This variable, which includes a variety of expenses, such as payroll, workers compensation and training investment, reflects the management policy stance. Efficiency Ratios demonstrate how efficiently the company uses its assets and how efficiently the company manages its operations. Asset Turnover Ratio=Revenue/ Total Assets Indicates the relationship between assets and revenue. Things to remember Companies with low profit margins tend to have high asset turnover, those with high profit margins have low asset turnover it indicates pricing strategy. This ratio is more useful for growth companies to check if in fact they are growing revenue in proportion to sales. Asset Turnover Analysis: This ratio is useful to determine the amount of sales that are generated from each dollar of assets. As noted above, companies with low profit margins tend to have high asset turnover, those with high profit margins have low asset turnover. Earnings Profitability Earnings and profitability, the prime source of increase in capital base, is examined with regards to interest rate policies and adequacy of provisioning. In addition, it also helps to support present and future operations of the institutions. The single best indicator used to gauge earning is the Return on Assets (ROA), which is net income after taxes to total asset ratio. Strong earnings and profitability profile of banks reflects the ability to support present and future operations. More specifically, this determines the capacity to absorb losses, finance its expansion, pay dividends to its shareholders, and build up an adequate level of capital. Being front line of defense against erosion of capital base from losses, the need for high earnings and profitability can hardly be overemphasized. Although different indicators are used to serve the purpose, the best and most widely used indicator is Return on Assets (ROA). However, for in-depth analysis, another indicator Net Interest Margins (NIM) is also used. Chronically unprofitable financial institutions risk insolvency. Compared with most other indicators, trends in profitability can be more difficult to interpret-for instance, unusually high profitability can reflect excessive risk taking. ROA-Return On Assets An indicator of how profitable a company is relative to its total assets.ÂÂ  ROA gives an ideaÂÂ  as to how efficientÂÂ  management isÂÂ  at using its assets to generate earnings.ÂÂ  Calculated by dividing a companys annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as return on investment. The formula for return on assets is: ROAÂÂ  tells what earnings were generated from invested capital (assets). ROA for public companies can vary substantially and will be highly dependent on the industry. This is why when using ROA as a comparative measure,ÂÂ  it is best to compare it againstÂÂ  a companysÂÂ  previous ROA numbers or the ROA of a similar company.ÂÂ   The assets of the company are comprised of both debt and equity. Both of these types of financing are used to fund the operations of the company. The ROA figure gives investors an ideaÂÂ  of how effectively the company is converting the moneyÂÂ  it hasÂÂ  to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment. For example, if one company has a net income of $1 millionÂÂ  and totalÂÂ  assets of $5 million, its ROA is 20%; however, if another company earns the same amount but has total assets of $10 million,ÂÂ  it hasÂÂ  an ROA of 10%. Based on this example, the first companyÂÂ  is better at converting its investment into profit. When you really think about it,ÂÂ  managements most important job is to make wise choicesÂÂ  in allocatingÂÂ  its resources. Anybody can make a profit by throwing a ton of money at a problem, butÂÂ  very few managers excel at maki ng large profits with little investment Liquidity An adequate liquidity position refers to a situation, where institution can obtain sufficient funds, either by increasing liabilities or by converting its assets quickly at a reasonable cost. It is, therefore, generally assessed in terms of overall assets and liability management, as mismatching gives rise to liquidity risk. Efficient fund management refers to a situation where a spread between rate sensitive assets (RSA) and rate sensitive liabilities (RSL) is maintained. The most commonly used tool to evaluate interest rate exposure is the Gap between RSA and RSL, while liquidity is gauged by liquid to total asset ratio. Initially solvent financial institutions may be driven toward closure by poor management of short-term liquidity. Indicators should cover funding sources and capture large maturity mismatches. The term liquidity is used in various ways, all relating to availability of, access to, or convertibility into cash. An institution is said to have liquidity if it can easily meet its needs for cash either because it has cash on hand or can otherwise raise or borrow cash. A market is said to be liquid if the instruments it trades can easily be bought or sold in quantity with little impact on market prices. An asset is said to be liquid if the market for that asset is liquid. The common theme in all three contexts is cash. A corporation is liquid if it has ready access to cash. A market is liquid if participants can easily convert positions into cash-or conversely. An asset is liquid if it can easily be converted to cash. The liquidity of an institution depends on: the institutions short-term need for cash; cash on hand; available lines of credit; the liquidity of the institutions assets; The institutions reputation in the marketplace-how willing will counterparty is to transact trades with or lend to the institution? The liquidity of a market is often measured as the size of its bid-ask spread, but this is an imperfect metric at best. More generally, Kyle (1985) identifies three components of market liquidity: Tightness is the bid-ask spread; Depth is the volume of transactions necessary to move prices; Resiliency is the speed with which prices return to equilibrium following a large trade. Examples of assets that tend to be liquid include foreign exchange; stocks traded in the Stock Exchange or recently issued Treasury bonds. Assets that are often illiquid include limited partnerships, thinly traded bonds or real estate. Cash maintained by the banks and balances with central bank, to total asset ratio (LQD) is an indicator of banks liquidity. In general, banks with a larger volume of liquid assets are perceived safe, since these assets would allow banks to meet unexpected withdrawals. Credit deposit ratio is a tool used to study the liquidity position of the bank. It is calculated by dividing the cash held in different forms by total deposit. A high ratio shows that there is more amounts of liquid cash with the bank to met its clients cash withdrawals. Sensitivity To Market Risk It refers to the risk that changes in market conditions could adversely impact earnings and/or capital. Market Risk encompasses exposures associated with changes in interest rates, foreign exchange rates, commodity prices, equity prices, etc. While all of these items are important, the primary risk in most banks is interest rate risk (IRR), which will be the focus of this module. The diversified nature of bank operations makes them vulnerable to various kinds of financial risks. Sensitivity analysis reflects institutions exposure to interest rate risk, foreign exchange volatility and equity price risks (these risks are summed in market risk). Risk sensitivity is mostly evaluated in terms of managements ability to monitor and control market risk. Banks are increasingly involved in diversified operations, all of which are subject to market risk, particularly in the setting of interest rates and the carrying out of foreign exchange transactions. In countries that allow banks to make trades in stock markets or commodity exchanges, there is also a need to monitor indicators of equity and commodity price risk. Interest Rate Risk Basics In the most simplistic terms, interest rate risk is a balancing act. Banks are trying to balance the quantity of repricing assets with the quantity of repricing liabilities. For example, when a bank has more liabilities repricing in a rising rate environment than assets repricing, the net interest margin (NIM) shrinks. Conversely, if your bank is asset sensitive in a rising interest rate environment, your NIM will improve because you have more assets repricing at higher rates. An extreme example of a repricing imbalance would be funding 30-year fixed-rate mortgages with 6-month CDs. You can see that in a rising rate environment the impact on the NIM could be devastating as the liabilities reprice at higher rates but the assets do not. Because of this exposure, banks are required to monitor and control IRR and to maintain a reasonably well-balanced position. Liquidity risk is financial risk due to uncertain liquidity. An institution might lose liquidity if its credit rating falls, it experiences sudden unexpected cash outflows, or some other event causes counterparties to avoid trading with or lending to the institution. A firm is also exposed to liquidity risk if markets on which it depends are subject to loss of liquidity. Liquidity risk tends to compound other risks. If a trading organization has a position in an illiquid asset, its limited ability to liquidate that position at short notice will compound its market risk. Suppose a firm has offsetting cash flows with two different counterparties on a given day. If the counterparty that owes it a payment defaults, the firm will have to raise cash from other sources to make its payment. Should it be unable to do so, it too we default. Here, liquidity risk is compounding credit risk. Accordingly, liquidity risk has to be managed in addition to market, credit and other risks. Because of its tendency to compound other risks, it is difficult or impossible to isolate liquidity risk. In all but the most simple of circumstances, comprehensive metrics of liquidity risk dont exist. Certain techniques of asset-liability management can be applied to assessing liquidity risk. If an organizations cash flows are largely contingent, liquidity risk may be assessed using some form of scenario analysis. Construct multiple scenarios for market movements and defaults over a given period of time. Assess day-to-day cash flows under each scenario. Because balance sheets differed so significantly from one organization to the next, there is little standardization in how such analyses are implemented. Regulators are primarily concerned about systemic implications of liquidity risk. Business activities entail a variety of risks. For convenience, we distinguish between different categories of risk: market risk, credit risk, liquidity risk, etc. Although such categorization is convenient, it is only informal. Usage and definitions vary. Boundaries between categories are blurred. A loss due to widening credit spreads may reasonably be called a market loss or a credit loss, so market risk and credit risk overlap. Liquidity risk compounds other risks, such as market risk and credit risk. It cannot be divorced from the risks it compounds. An important but somewhat ambiguous distinguish is that between market risk and business risk. Market risk is exposure to the uncertain market value of a portfolio. Business risk is exposure to uncertainty in economic value that cannot be marked-to-market. The distinction between market risk and business risk parallels the distinction between market-value accounting and book-value accounting. The distinction between market risk and business risk is ambiguous because there is a vast gray zone between the two. There are many instruments for which markets exist, but the markets are illiquid. Mark-to-market values are not usually available, but mark-to-model values provide a more-or-less accurate reflection of fair value. Do these instruments pose business risk or market risk? The decision is important because firms employ fundamentally different techniques for managing the two risks. Business risk is managed with a long-term focus. Techniques include the careful development of business plans and appropriate management oversight. book-value accounting is generally used, so the issue of day-to-day performance is not material. The focus is on achieving a good return on investment over an extended horizon. Market risk is managed with a short-term focus. Long-term losses are avoided by avoiding losses from one day to the next. On a tactical level, traders and portfolio managers employ a variety of risk metrics -duration and convexity, the Greeks, beta, etc.-to assess their exposures. These allow them to identify and reduce any exposures they might consider excessive. On a more strategic level, organizations manage market risk by applying risk limits to traders or portfolio managers activities. Increasingly, value-at-risk is being used to define and monitor these limits. Some organizations also apply stress testing to their portfolios. Profitability Ratios Million US $ No Description 2002 2003 2004 2005 2006 2007 Trends 1 Net Worth 2194 2478 2709 5269 6992 16501 ÂÂ   2 Profit After Tax 278 287 208 511 1179 1514 ÂÂ   3 Total Assets 7272 11228 17810 36723 52403 92609 ÂÂ   4 Interest Income 530 665 1049 1759 3606 5387 ÂÂ   5 Interest Expenses 182 345 475 920 1892 2831 ÂÂ   6 Deposits 3722 6071 9278 19396 27575 51892 ÂÂ   7 Borrowings 694 707 1729 2937 4468 5176 ÂÂ   8 Non-Interest Income 419 263 546 779 1538 1702 ÂÂ   9 Net Interest Income 348 320 574 839 1,714 2,556 ÂÂ   10 Operating Expenses 263 391 628 850 2011 1460 ÂÂ   11 Provision Against NPAs ÂÂ   ÂÂ   196 103 442 526 ÂÂ   1 Return on Equity = (2/1) 12.67% 11.58% 7.68% 9.70% 16.86% 9.18% 3.08 2 Return on Assets = (2/3) 3.82% 2.56% 1.17% 1.39% 2.25% 1.63% 2.92 3 Net Interest Margin = (4-5)/3 4.79% 2.85% 3.22% 2.28% 3.27% 2.76% 2.99 4 Interest Income Ratio = (4/3) 7.29% 5.92% 5.89% 4.79% 6.88% 5.82% 3.03 5 Interest Expense Ratio = 5 / (6+7) 4.12% 5.09% 4.32% 4.12% 5.90% 4.96% 3.05 6 Non-Interest Income Ratio = (8/9) 120.40% 82.19% 95.12% 92.85% 89.73% 66.59% 2.91 7 Operating Expense Ratio = (10) / (8+9) 34.29% 67.07% 56.07% 52.53% 61.84% 34.29% 2.78 8 NPA Provision Ratio = (11/9) 0.00% 0.00% 34.15% 12.28% 25.79% 20.58% 3.35 Mostly flat or declining Trend Few Financial Data Analysis 2003 2002 2001 Assets increased to US$92,609 million, up 76.7% from 2006, and net loans and advances to customers increased to US$58,549 million, up 100.1% from 2006. The proportion of the net loan portfolio to total assets has increased to 63.2% from 55.8% in 2006. At the same time as we increase assets, we are maintaining a firm grip on credit quality. The share of overdue and rescheduled loans in the gross loan portfolio decreased to 1.4% by the end of 2007 from 2.1% at the end of 2006, while the provisioning rate decreased to 1.3% from 1.8%. Coverage of overdue and rescheduled loans by allowances for loan impairment stood at a comfortable level of 176.5% as of December 31, 2007. VTB Groups consolidated net profit for 2007 amounted to US$1,514 million, up 28.4% from 2006, as a result of strong loan portfolio growth. Core income, which includes net interest and fee and commission income before exceptional item, rose by 48.0% to US$ 3,056 million, reflecting strong growth throughout the Groups key strategic areas. Net interest income grew by US$842 million (49.2%), and net fee and commission income, adjusted for the IPO-related depositary appointment fee, grew by US$149 million (42.5%) compared to 2006. Net interest margin remained broadly stable at 4.4% with increased contribution from our retail business. Operating costs increased by 42.2% in 2007, reflecting the investment in growing the business, particularly in retail, as we rolled out the branch opening programme for VTB24. As a result our cost to income ratio increased to 53.6% from 50.8%, but this investment will help us achieve our long-term objectives. With a consolidated BIS Tier 1 capital of US$15,594 million, compared to US$6,357 million at December 31, 2006, and total BIS capital of US$16,978 million, compared to US$7,646 million at December 31, 2006, the bank has been able to continue to capitalise on its advantage in the fragmented domestic financial services market to win new customers and increase volumes. By the end of December 31, 2007, our total capital adequacy ratio was at 16% up from 14% one year ago. Given the current economic climate, VTBs strategy of diversifying its funding sources has been particularly important. With its strong brand and financial stability, VTB was able to increase customer deposits by 85.6% to US$37,098 million. Wholesale funding (which includes debt securities issued, other borrowed funds and subordinated debt) increased by 32.7% to US$ 22,836 million. In 2007, VTB successfully completed a number of planned funding transactions. Landmark fund raising deals include a Series 11 issue for EUR 1 billion, the largest Eurobond in EUR among Russian banks, and a Series 12 issue for GBP 300 million, the first ever GBP issue from Russia. Despite the uncertainty in the international financial markets in the second half of 2007, in October VTB issued a double-tranche Eurobond offering for the aggregate amount of US$2 billion within the new EMTN programme. This operation is the largest international Eurobond issuance by a Russian non-sovereign borrower. This issue received strong support from the international investment community in a number of different financial markets, demonstrating confidence among international investors in the strength of VTBs credit, and the stability of the Russian banking sector.